Taiwan’s TSMC, Samsung want in on Washington's US$52 billion chip subsidy plan

台灣台積電、三星希望爭取華盛頓520億美元的晶片補貼計劃

US legislation to bolster chip manufacturing slowly making way through Congress

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co. want to be eligible to receive part of the US$52 billion (NT$1.5 trillion) in subsidies meant to bolster chip manufacturing in the U.S.

TSMC and Samsung are both planning new multi-billion dollar semiconductor fabs in the U.S. as legislation focused on improving domestic chip manufacturing slowly makes its way through Congress.

American rival Intel has previously said that subsidies should only go to domestic firms, although CEO Pat Gelsinger has held back from repeating the suggestion in recent remarks, Bloomberg reported. Intel’s most advanced chips are at least one generation behind TSMC and Samsung, the report said.

“Arbitrary favoritism and preferential treatment based on the location of a company’s headquarters is not an effective or efficient use of the grant and ignores the reality of public ownership for most of the leading semiconductor companies,” Bloomberg cited TSMC as saying in a statement on the U.S. Department of Commerce’s request for information on chip supply chains.

TSMC suggested that Washington not try and copy the existing supply chain but instead focus on developing cutting-edge technologies to boost its competitiveness, according to Bloomberg. The world’s largest contract chipmaker also recommended the U.S. reform its immigration policies to allow for more foreign talent.

Samsung has also called for U.S. chip subsidies to be extended to foreign companies. The Korean chipmaker said Washington should make sure all qualifying firms, regardless of their countries of origin, can compete for U.S. funding “on an even playing field.”

TSMC is currently building a US$12 billion fab for 5-nanometer chips in Phoenix, Arizona, which is expected to begin commercial production in 2024. Samsung is planning a US$17 billion chip facility in Austin, Texas, with production slated to start in 2026.

The Senate first passed the chip subsidy legislation last June, while the House of Representatives passed its version in February, according to Reuters.

The Senate on Monday (March 28) again approved the bill in a procedural vote, which will now send the legislation back to the House. Both chambers need to agree on a compromise version before President Joe Biden can sign it into law.